Buying SPX Calls:Buying an SPX call is one of the simplest and most popular strategies used by option investors employing SPX index options.

Buying SPX Puts:Buying an SPX put is one of the simplest and most popular bearish strategies used by investors employing SPX index options.

Buying SPX Straddles:Buying an SPX straddle combines the benefits of both an SPX call and an SPX put purchase.

SPX Bull Call Spreads:This spread allows an investor the opportunity to profit to a limited extent from a limited move in the level of the SPX, while having less capital at risk than with the outright purchase of a call option.

SPX Bear Put Spreads:This spread allows an investor the opportunity to profit to a limited extent from a limited move in the level of the SPX, while having less capital at risk than with the outright purchase of a put option.

Protective Collar with SPX Options: (PDF Download)The protective S&P 500 collar strategy provides downside protection through the use of index put options, and finances the purchase of the puts through the sale of short index call options, in effect trading away some upside potential.

Long SPX Call Options to Gain Market Exposure: (PDF Download)S&P 500 index option contracts can provide an investor with the market exposure necessary to participate in upside gains at a fraction of the cost of transacting in the index components.

Buying OEX Calls:Buying an OEX call is one of the simplest and most popular strategies used by option investors employing OEX index options.

Buying OEX Puts:Buying an OEX put is one of the simplest and most popular bearish strategies used by investors employing OEX index options.

Buying OEX Straddles:Buying an SPX straddle combines the benefits of both an OEX call and an OEX put purchase.

OEX Bull Call Spreads:This spread allows an investor the opportunity to profit to a limited extent from a limited move in the level of the OEX, while having less capital at risk than with the outright purchase of a call option.

OEX Bear Put Spreads:This spread allows an investor the opportunity to profit to a limited extent from a limited move in the level of the OEX, while having less capital at risk than with the outright purchase of a put option.

OEX Bear Put Spread: (PDF Download)An investor who is bearish on the S&P 100 in the short term could consider a Bear Put Spread - buy a put at a strike price, and sell a put at a lower strike price.

Neutral to Moderately Bullish on XEO: (PDF Download)An investor who is neutral to moderately bullish on the S&P 100 might consider a Short Put Spread on S&P 100 options (XEO) with European-style exercise - sell OEX puts at a strike price, and buy OEX puts at a lower strike price.

Volatility Strategy - Long Mini-NDX (MNX®) Straddle (PDF download):If an investor believes that the VIX® and VXNSM indexes are at relatively low levels, and that volatility could increase in the near future, one strategy that could be considered is a long straddle, where the investor buys index calls and puts.

QQQ Collar - Low-cost Protection of Tech-oriented Portfolio (PDF download):The protective QQQ collar strategy provides downside protection through the use of index put options, and finances the purchase of the puts through the sale of short index call options, in effect trading away some upside potential.

An investor who is neutral to moderately bullish on some equities in his/her portfolio;

An investor who is willing to limit his/her upside potential in exchange for some downside protection; and

An investor who would like to be paid for assuming the obligation of selling a particular stock at a specified price.

Russell 2000 (RUT):

Buy Calls on Russell 2000® (RUTSM) - Anticipate "January Effect" (PDF download):An investor who has researched the January Effect and who has a short-term bullish outlook for small-cap-stocks near the end of the calendar year could consider buying call options on the Russell 2000 in order to participate in upside moves of small-cap stocks while minimizing the downside risk exposure.

Other Cboe Sites

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this website is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in the website information. No statement within the website should be construed as a recommendation to buy or sell a security or to provide investment advice. The inclusion of non-Cboe advertisements on the website should not be construed as an endorsement or an indication of the value of any product, service, or website. The Terms and Conditions govern use of this website and use of this website will be deemed acceptance of those Terms and Conditions.